Nirmala Sitharaman, the finance minister, meets with PSB executives and assesses financial performance

 Nirmala Sitharaman, the finance minister, meets with PSB executives and assesses financial performance

Nirmala Sitharaman, the finance minister, meets with PSB executives and assesses financial performance

The government organization NARCL was established in 2021, with private banks holding the remaining portion and public sector banks (PSBs) holding the majority of the shares.

Financial Services Secretary Vivek Joshi requested that managing directors and CEOs of PSBs do a monthly evaluation of the top 20 cases for settlement during a meeting.

In a meeting with the leaders of public sector banks on Saturday, Finance Minister Nirmala Sitharaman examined their financial performance.

Risks to the banking industry and cyber security were reportedly mentioned at the discussion, according to sources. He claimed that topics like deliberate defaulters, scams, and the development of the National Asset Reconstruction Company Limited (NARCL) were also covered. Presumably, this is the last comprehensive review meeting before the general elections in late 2019 and the announcement of the 2024–25 budget.

In terms of performance, PSU banks earned a profit in the first half of the current financial year of around Rs 68,500 crore. According to the report, banks' balance sheets expanded favorably in 2022–2023 as both deposits and loans rose. By the end of March 2023, the amount of gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) had dropped to 3.2 percent, which was a ten-year low. The paper states that the 2022–2023 period will see the continuation of the banks' asset quality improvement, which started in 2018–19. Between April and September of the current fiscal year, the GNPA ratio was 3.2%.

The government organization NARCL was established in 2021, with private banks holding the remaining portion and public sector banks (PSBs) holding the majority of the shares. The sponsoring bank was the bank. In accordance with the legislation known as the Securitization and Reconstruction of Financial Assets as well as Security Interest Enforcement Act, 2002, it is registered as a valuable resource reconstruction firm with the Reserve Bank of India.

In a review meeting earlier this month, the heads of PSBs were instructed by the Finance Ministry to keep an eye on all cases, particularly the top 20 cases under the Insolvency and Bankruptcy Code, in order to manage their bad assets. Financial Services Secretary Vivek Joshi requested that managing directors and CEOs of PSBs do a monthly evaluation of the top 20 cases for settlement during a meeting.